Looking To Increase Your Savings?  Your Emotions Could Help You Save More

Looking To Increase Your Savings? Your Emotions Could Help You Save More

As a business owner, I know that goal-setting helps us achieve real progress and create a shared vision for everyone in our business. I never thought of its influence as emotional, but here’s an interesting article on using our emotions to further our goals:

According to a study from Brad Klontz, psychologist, certified financial planner and associate professor at Creighton University, tapping into your emotional connection with nostalgic items could inspire you to save more.

The theory behind this strategy is that making a connection with a sentimental item/memory can provide you with a visualization of your goal. Additionally, giving your savings goal […] Read more

Don’t Get Hit With a Big Tax Bill! Most People Are Not Having Enough Federal Tax Withheld!

Don’t Get Hit With a Big Tax Bill! Most People Are Not Having Enough Federal Tax Withheld!

The IRS is trying to spread the news, and we want to help our clients:  The new tax laws are resulting in many taxpayers being under-withheld because their paycheck withholding was reduced—potentially in excess of the reduction in their tax liability!

While in past years we recommended clients do tax planning when they experienced a major life change, this year we are recommending that almost everyone take a look at their tax situation. For $75-$150 (depending on complexity), we can prepare a tax projection to determine if your withholdings are correct, if they need adjusted and/or if you should make estimated payments before […] Read more

Millennials: Are you living within your means?

Millennials: Are you living within your means?

Here at N & Co. we have a number of “millennial” clients, business owners, children, and interns.  We enjoy their unique perspective on the world, and as accountants, we are especially interested in their ideas about money. The millennials we know are discerning consumers and are concerned about where their money is going. Miriam Cross, of Kiplinger’s Personal Finances magazine, suggests millennials really review all of their expenses (the needs and the wants), as well  as their savings, to ensure they are looking ahead at their financial future.

Cross suggests tracking all expenses for two or three months—without judgment—so that you have […] Read more

Considering a Roth IRA Conversion:  Why it could make sense to pay taxes on retirement savings sooner versus later

Considering a Roth IRA Conversion: Why it could make sense to pay taxes on retirement savings sooner versus later

Our clients are savvy consumers, and we encourage them to plan carefully for retirement.  That means we welcome the opportunity to help take a long view on tax planning and map out long-term tax saving strategies.

Roth conversions are one such strategy.  Rob Williams, a director of financial planning, retirement income and wealth management with Charles Schwab, offers the following tips: https://www.schwab.com/resource-center/insights/content/3-reasons-to-consider-roth-ira-conversion

 Our team at Nichols & Company is here to help you measure the benefit of IRA conversions. Feel free to call our office at 614-891-5423 to make an appointment to discuss your personal situation.

 

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Thinking ahead to tax season: Do you know what’s taxable?

Thinking ahead to tax season: Do you know what’s taxable?

The tax laws have changed. Take Kiplinger’s Personal Finance Quiz to find out if you know what IS and what IS NOT taxable. If your results show you need more help with determining what is taxable, please feel free to give our office a call. Your accountant will be happy to help you determine what you need to include on your 2018 tax return!

https://www.kiplinger.com/quiz/taxes/T055-S003-is-it-taxable/index.html

 

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529 Plans:  2018 Tax Law Changes

529 Plans: 2018 Tax Law Changes

For parents or grandparents, 529 plans can be a smart way to save for schooling.  Here are recent legislative changes:

Saving—
Annual contribution limits double in 2018 from $2,000 to $4,000 per beneficiary.

Paying for expenses—
Beginning in 2018, 529 funds can be used to pay not only for college and other post-secondary education and related expenses, but also for tuition connected with elementary or secondary public, private, or religious school. 
The earnings of 529 plan accounts are not subject to federal or state tax when used for qualified educational expenses.

Key points to remember when using a 529 to pay expenses:

N&Co can help you […] Read more

First-Time Abatement: An IRS Hidden Treasure

First-Time Abatement: An IRS Hidden Treasure

Have you received a notice from the IRS, stating you owe money and/or have had penalties and interest applied? The IRS sends thousands of these letters to taxpayers every year. At Nichols & Company, we always recommend you send a copy of your notice to us and let us handle the matter on your behalf.

Occasionally, notices address issues such as failure to file, failure to pay, or failure to deposit. Any of these issues are eligible for resolution using a first-time abatement (FTA).  There are certain circumstances where an FTA will be honored, and we are well aware of what […] Read more

I moved — Are any of my expenses tax deductible?

I moved — Are any of my expenses tax deductible?

Good news! If your move was job-related, you could be looking at some tax deductions. Here are some helpful tips to determine what is relevant:

-The move must be within a year of your start date at the new job.

-Your new job must be at least 50 miles farther from your old home.

-You need to work full-time at your new job at least 39 weeks in the first year. (If self-employed, you must work full-time for at least 78 weeks during the first two years at the new location.)

Also, remember to keep track of all move-related items, such as receipts, bills, […] Read more

When Paper Beats Cash—helping executives measure the value of stock options

When Paper Beats Cash—helping executives measure the value of stock options

Employees these days have a number of factors to consider when going into a new job and negotiating compensation. Is it better to have a higher salary and fewer stock options? Or a lower salary and more stock options? According to an informal survey conducted by Forbes magazine, most employees have no idea how to place a value on options and make a clear decision. Factors to consider are:

Vesting (will you still be with the company by the time your options vest?);
Expiration (the options probably expire if a private company never goes public while you are there);
Liquidity (it’s possible your […] Read more